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प्रश्न
The Finance Minister reduced the repo rate to overcome recession. This is related to which dimension of business environment.
विकल्प
Economic
Political
Social
Technological
MCQ
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उत्तर
Economic
Explanation:
The repo rate is a key component of a country’s monetary policy and is used by the Reserve Bank of India (RBI) or influenced by the Finance Ministry to:
- Control inflation or recession
- Regulate the money supply in the economy
- Influence borrowing and lending rates
In this case, reducing the repo rate is a step taken to:
- Encourage borrowing
- Increase investment and spending
- Boost economic activity during a recession
All of these directly fall under the economic environment, which includes fiscal policies, monetary policies, interest rates, inflation, and overall economic conditions.
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